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Accounting Ratio
My notes based on 2010 quarter 4 report (number in '000):-
- In 2010, Corporate & Investment Banking (“CIB”) PBT jumped 71.2% Y-o-Y at RM1.149 billion in tandem with the more robust regional capital markets and several major transactions over the past 12 months. PBT at Treasury and Investments were 17.5% lower Y-o-Y to RM1.217 billion mainly due to lower investment profits
- The Group’s Malaysian consumer bank PBT declined by 16.9% Y-o-Y. However, excluding the one-off General Provision write-back in 4Q09 ahead of FRS139 implementation, the Malaysian consumer bank’s FY10 PBT was flat
- CIMB Niaga’s contribution surged 99.7% Y-o-Y to RM1.572 billion from RM787 million previously due to operational improvements and favourable operating conditions. CIMB Thai’s PBT was flat Y-o-Y at RM47 million as provision coverage was improved. Asset Management and Insurance PBT was 38.3% lower Y-o-Y at RM87 million largely due to the non-recurrence of gains on change in accounting standards at CIMB Aviva in 2009
- CIMB Niaga was the largest contributor t0 FY10 Group PBT at 34% versus 21% i th previous corresponding period. The Malaysian Consumer Bank’s contribution to Group PBT fell to 12% compared to 18% in FY09, while Treasury and Investments declined to 26%. Contribution from CIB rebounded to 25% from 18% previously. Group Asset
Management (“GAM”) and Insurance fell to 2% from 4% while CIMB Thai’s contribution remained at 1%. Total non-Malaysian PBT contribution to the Group jumped to a new high of 48% in 2010 from 25% in 2009
- The Group’s total gross loans expanded 12.4% Y-o-Y, largely driven by the 18.0% expansion (in RM terms) of CIMB Niaga’s gross loans and the 15.3% growth in Malaysian consumer loans. Mortgages, credit cards and micro credit lending in Malaysia grew by 20.7%, 40.6% and 13.6% respectively Y-o-Y. Hire purchase loans grew by 10.6% Y-o-Y but commercial banking loans continued to decline by 1.1% Y-o-Y. Corporate loans improved by 1.8% Y-o-Y. The Group's overall net interest margins improved to 3.32% from 3.28% last year
- Total Group's deposits grew by 11.6%, underpinned by a 28.5% surge from CIMB Niaga as its deposit accumulation initiatives picked up pace. CIMB Bank's retail account balances grew 17.0% Y-o-Y as both its Malaysian and Singapore current and savings account balances grew strongly. CIMB Thai’s deposits grew by 6.0%
- The total loan impairment charge (under FRS139 policies) for the Group was RM607 million for FY10. The Group’s total credit charge was 0.36%, lower than the 0.60% full year target. The Group’s gross impaired loans ratio was 6.1% for FY10 down from 6.6% as at end-9MFY10 and 7.6% at the beginning of the year, with an impairment allowance coverage of 82.3%. The Group’s cost to income ratio rose to 55.3% compared to 52.8% in FY09
- The Group's 4Q10 revenues of RM3.169 billion were 10.2% higher versus 3Q10, but net profits were 4.1% lower on a Q-o-Q basis at RM878 million
- The Group's Malaysian Consumer Banking division PBT fell by 47.9% Q-o-Q due to higher provisions for business banking accounts, lower recoveries and higher overhead expenses. CIB surged by 62.5% on stronger deal flow but Treasury and Investments were 29.5% lower. CIMB Niaga's PBT contribution grew 12.6% Q-o-Q to RM394 million. GAM and Insurance PBT contributions declined 3.8% to RM25 million. CIMB Thai's PBT contribution (after GAAP adjustments) was a loss of RM14 million from a profit of RM35 million in 3Q10
- CIMB Niaga reported a FY10 net profit of IDR2,548 billion, a 62.5% Y-o-Y growth with a FY10 net ROE of 20.4%. The stronger performance was attributed to the strong loans and deposits growth and lower provisions. On a sequential basis, the 4Q10 net profit of IDR754 billion was 13.1% higher than 3Q10 primarily due to stronger revenue and lower provisions
- CIMB Niaga's gross loans grew 25.8% Y-o-Y in FY10 driven by strong performances from all major retail and corporate segments. Gross NPL of 2.5% as at end-December 2010 was an improvement from the 2.7% as at end-September 2010 and the 3.0% as at the corresponding period last year. CIMB Niaga loan loss coverage stood at 125.6% as at end-December 2010 compared to 108.6% as at end-December 2009
- CIMB Thai announced a FY10 net profit of THB829 million, a significant improvement from the THB2 million profit in FY09. Additional provisions lifted its loan loss coverage ratio from 62.2% at the beginning of the year to 91.3% currently. For the 12-month period, CIMB Thai chalked revenue of THB7.135 billion, a 3.6% improvement Y-o-Y
- CIMB Islamic's Y-o-Y PBT jumped 136.8% to RM404 million as Shariah-compliant banking products continue to gain ground. CIMB Islamic‟s gross financing assets grew 39.3% Y-o-Y, accounting for 14.1% of total Group loans. Total deposits grew by 29.6% Y-o-Y to RM22.7 billion
- Estimate next 4Q eps after 2010 Q4 result announced = 0.49*1.05 = 0.5145, estimate PE on current price 7.99 = 15.02(DPS 0.18)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1267*4*0.97 = 0.4916, estimate highest/lowest PE = 18.29/15.99 (DPS 0.18)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.125*4*1.1 = 0.55, estimate highest/lowest PE = 15.42/13.78 (DPS 0.14)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2366*4*1.1 = 1.041(10% increase quarter-by-quarter), after bonus estimate eps = 1.041/2 = 0.5205, estimate highest/lowest PE = 15.19/12.46 (DPS 0.185/2 = 0.0925)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2268*4*1.1 = 0.9979, estimate highest/lowest PE = 14.67/12.5 (DPS 0.185)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2058*4*1.1 = 0.9055, estimate highest/lowest PE = 14.72/13.04 (DPS 0.25)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1879*4*1.1 = 0.8268, estimate highest/lowest PE = 15.59/11.73 (DPS 0.25)
CIMB latest news (English)
CIMB latest news (Chinese)
| Market Capital (Capital Size) | 59,387,869,421 (Very Large) |
| Par Value | RM 1.00 |
My Analysis
| Forecast P/E now | (7.99-0.26)/0.5145 = 15.02 (Moderate) |
| Target Price | 8.23+0.26 = 8.49 (PE 16.0, EPS 0.5145, DPS 0.26) |
| Decision | NOT BUY unless price below 7.8 |
| Comment | Revenue increased 8.9%, higher than preceding year corresponding quarter 16% and is highest all the time, eps decreased 6.6% but higher than preceding year corresponding quarter 4.4%, negative free cash flow decreasing and net cash flow increasing and turn into positive, import & export decreased on Jan, consumer price index in Jan still increasing |
| First Support Price | 8.0 |
| Second Support Price | 7.8 |
| Risk Rating | LOW |
Research House
| Affin Target Price | 10 (2011-01-21) |
| Maybank Target Price | 10.3 (2011-02-07) |
| OSK Target Price | 9.77 (2011-02-18) |
| RHB Target Price | 9.8 (2011-02-21) |
| ECM Target Price | 7.95 (2011-02-28) |
| HwangDBS Target Price | 10.1 (2011-02-28) |
| MIDF Target Price | 9.6 (2011-02-28) |
| TA Target Price | 10.8 (2011-02-28) |
| AMMB Target Price | 9.7 (2011-03-02) |
Accounting Ratio
| Return on Equity | 14.49% |
| Dividend Yield | 3.26% |
| Profit Margin | 36.23% |
| Tax Rate | 23.26% |
| Asset Turnover | 0.0443 |
| Net Asset Value Per Share | 3.26 |
| Net Tangible Asset per share | 1.91 |
| Price/Net Tangible Asset Per Share | 4.23 |
| Cash Per Share | 7.74 |
| Liquidity Current Ratio | 1.1157 |
| Liquidity Quick Ratio | 0.9874 |
| Liquidity Cash Ratio | 0.249 |
| Gearing Debt to Equity Ratio | 10.4594 |
| Gearing Debt to Asset Ratio | 0.9098 |
| Working capital per thousand Ringgit sale | 223.4% |
| Days to sell the inventory | 1613 |
| Days to collect the receivables | 4866 |
| Days to pay the payables | 12295 |
My notes based on 2010 quarter 4 report (number in '000):-
- In 2010, Corporate & Investment Banking (“CIB”) PBT jumped 71.2% Y-o-Y at RM1.149 billion in tandem with the more robust regional capital markets and several major transactions over the past 12 months. PBT at Treasury and Investments were 17.5% lower Y-o-Y to RM1.217 billion mainly due to lower investment profits
- The Group’s Malaysian consumer bank PBT declined by 16.9% Y-o-Y. However, excluding the one-off General Provision write-back in 4Q09 ahead of FRS139 implementation, the Malaysian consumer bank’s FY10 PBT was flat
- CIMB Niaga’s contribution surged 99.7% Y-o-Y to RM1.572 billion from RM787 million previously due to operational improvements and favourable operating conditions. CIMB Thai’s PBT was flat Y-o-Y at RM47 million as provision coverage was improved. Asset Management and Insurance PBT was 38.3% lower Y-o-Y at RM87 million largely due to the non-recurrence of gains on change in accounting standards at CIMB Aviva in 2009
- CIMB Niaga was the largest contributor t0 FY10 Group PBT at 34% versus 21% i th previous corresponding period. The Malaysian Consumer Bank’s contribution to Group PBT fell to 12% compared to 18% in FY09, while Treasury and Investments declined to 26%. Contribution from CIB rebounded to 25% from 18% previously. Group Asset
Management (“GAM”) and Insurance fell to 2% from 4% while CIMB Thai’s contribution remained at 1%. Total non-Malaysian PBT contribution to the Group jumped to a new high of 48% in 2010 from 25% in 2009
- The Group’s total gross loans expanded 12.4% Y-o-Y, largely driven by the 18.0% expansion (in RM terms) of CIMB Niaga’s gross loans and the 15.3% growth in Malaysian consumer loans. Mortgages, credit cards and micro credit lending in Malaysia grew by 20.7%, 40.6% and 13.6% respectively Y-o-Y. Hire purchase loans grew by 10.6% Y-o-Y but commercial banking loans continued to decline by 1.1% Y-o-Y. Corporate loans improved by 1.8% Y-o-Y. The Group's overall net interest margins improved to 3.32% from 3.28% last year
- Total Group's deposits grew by 11.6%, underpinned by a 28.5% surge from CIMB Niaga as its deposit accumulation initiatives picked up pace. CIMB Bank's retail account balances grew 17.0% Y-o-Y as both its Malaysian and Singapore current and savings account balances grew strongly. CIMB Thai’s deposits grew by 6.0%
- The total loan impairment charge (under FRS139 policies) for the Group was RM607 million for FY10. The Group’s total credit charge was 0.36%, lower than the 0.60% full year target. The Group’s gross impaired loans ratio was 6.1% for FY10 down from 6.6% as at end-9MFY10 and 7.6% at the beginning of the year, with an impairment allowance coverage of 82.3%. The Group’s cost to income ratio rose to 55.3% compared to 52.8% in FY09
- The Group's 4Q10 revenues of RM3.169 billion were 10.2% higher versus 3Q10, but net profits were 4.1% lower on a Q-o-Q basis at RM878 million
- The Group's Malaysian Consumer Banking division PBT fell by 47.9% Q-o-Q due to higher provisions for business banking accounts, lower recoveries and higher overhead expenses. CIB surged by 62.5% on stronger deal flow but Treasury and Investments were 29.5% lower. CIMB Niaga's PBT contribution grew 12.6% Q-o-Q to RM394 million. GAM and Insurance PBT contributions declined 3.8% to RM25 million. CIMB Thai's PBT contribution (after GAAP adjustments) was a loss of RM14 million from a profit of RM35 million in 3Q10
- CIMB Niaga reported a FY10 net profit of IDR2,548 billion, a 62.5% Y-o-Y growth with a FY10 net ROE of 20.4%. The stronger performance was attributed to the strong loans and deposits growth and lower provisions. On a sequential basis, the 4Q10 net profit of IDR754 billion was 13.1% higher than 3Q10 primarily due to stronger revenue and lower provisions
- CIMB Niaga's gross loans grew 25.8% Y-o-Y in FY10 driven by strong performances from all major retail and corporate segments. Gross NPL of 2.5% as at end-December 2010 was an improvement from the 2.7% as at end-September 2010 and the 3.0% as at the corresponding period last year. CIMB Niaga loan loss coverage stood at 125.6% as at end-December 2010 compared to 108.6% as at end-December 2009
- CIMB Thai announced a FY10 net profit of THB829 million, a significant improvement from the THB2 million profit in FY09. Additional provisions lifted its loan loss coverage ratio from 62.2% at the beginning of the year to 91.3% currently. For the 12-month period, CIMB Thai chalked revenue of THB7.135 billion, a 3.6% improvement Y-o-Y
- CIMB Islamic's Y-o-Y PBT jumped 136.8% to RM404 million as Shariah-compliant banking products continue to gain ground. CIMB Islamic‟s gross financing assets grew 39.3% Y-o-Y, accounting for 14.1% of total Group loans. Total deposits grew by 29.6% Y-o-Y to RM22.7 billion
- Estimate next 4Q eps after 2010 Q4 result announced = 0.49*1.05 = 0.5145, estimate PE on current price 7.99 = 15.02(DPS 0.18)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1267*4*0.97 = 0.4916, estimate highest/lowest PE = 18.29/15.99 (DPS 0.18)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.125*4*1.1 = 0.55, estimate highest/lowest PE = 15.42/13.78 (DPS 0.14)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2366*4*1.1 = 1.041(10% increase quarter-by-quarter), after bonus estimate eps = 1.041/2 = 0.5205, estimate highest/lowest PE = 15.19/12.46 (DPS 0.185/2 = 0.0925)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2268*4*1.1 = 0.9979, estimate highest/lowest PE = 14.67/12.5 (DPS 0.185)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2058*4*1.1 = 0.9055, estimate highest/lowest PE = 14.72/13.04 (DPS 0.25)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1879*4*1.1 = 0.8268, estimate highest/lowest PE = 15.59/11.73 (DPS 0.25)
CIMB latest news (English)
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